Twitter plans to release mobile advertising product
Twitter is planning to release a mobile-advertising product in the next few weeks that application makers can use to encourage downloads of their programs, according to people with knowledge of the matter.
The format, known as an app-install ad, would help the San Francisco-based microblogging company attract marketers in the e-commerce and game industries, said the people, who asked not to be identified because the information was private. If users click on one of the ads that appear in their Twitter feed on mobile devices, they will be directed to the advertiser's page in a mobile-app store where they can download the program.
Twitter is expanding its mobile-ad offerings as it works to deliver on the promise of its November initial public offering. The company's stock has soared 78 per cent since then, as analysts have anticipated Twitter's annual revenue will almost double to US$1.2 billion this year, even as user growth has slowed.
Mobile is where Twitter's user base is growing the fastest, and where it derives more than 75 per cent of its ad revenue. Will Stickney, a spokesman for Twitter, declined to comment yesterday.
App-install ads have helped boost revenue at other social networking companies.
Facebook introduced the ads in October 2012, driving 245 million app downloads last year, the company has said. King Digital Entertainment used the Facebook ads to promote its mobile game Candy Crush, which has since become one of the most popular titles on Apple's app store.
Twitter has also updated its mobile applications to get users to spend more time sharing tweets and messaging each other, while working to make it easier for advertisers to target its 241 million users. Twitter acquired MoPub, a mobile advertising exchange, in October.